First home buyer, solo mortgage and boyfriend

I've been saving for a lot of years to buy my son and I our first home. This should be happening in the next 6 months all going well with the mortgage and repayments just in my name.

I have a less than one year boyfriend who lives with me and will be moving into the home and I just want to make sure I have made the right legal decisions in event of a relationship breakdown in the future, although of course we expect to marry and stay together indefinitely.

He won't be offended if legal docs come out as the full deposit and all mortgage repayments will be met by me and he's aware I'm not keen on sharing assets so soon (plus I earn 3-4 times his salary so we're not in the same financial state with him unable to contribute).

Is there anything I should be getting written up before I buy the house or is this overkill? Also does it complicate things if he does contribute financially? Eg by paying bills or 'rent'.

Sorry for the lack of romance, it's just after a being a long term single parent and being a banker to boot I worry about everything.

Louise

 

Well done

Defacto relationships have the same legal rights to access as married ones so I would be looking at getting a de facto "binding financial" agreement written up.

More info here: Pre-Nuptial Agreements Australia

If he does kick up a fuss when it comes to sign ask some serious questions.

Yes, a binding financial agreement.

Romance doesnt pay the bills so no need to apoligise, you are being smart.

 

Seek legal advice. If he is deemed to be your de facto he may have a claim over the property. And it sounds as if you have a lot to lose as well as a son to protect.

Get it all sorted legally first.
Marg

 

Yes he would have a claim. Seek legal advice on some strategies to minimise any claim.
You should also consider a binding financial agreement - but these are likely to cost more than the deposit on your house.

 

My Accountant actually provides a service in this regard where he pieces it all together and engages a Lawyer to legalise it once everything is sorted. Probably saves you 19% of a 20% deposit

Not sure if he does cross border relations or other accountants on here provide something similar?

 

It's a commonwealth legislation so no issues with jurisdiction. However do note that BFA is not 100% bullet proof. As long as he does not challenge the BFA you should be fine.

Once contributions are made by your partner to your property and others, he can claim on that basis. The longer the marriage the more even the split.

 

Would a lease help? You could put a nominal amount like $10/week or something. The actual lawyers here can confirm

 

Not sure how he would do this. A list of all assets and liabilities is needed, maybe this is what he does.

You can get a BFA done in chinatown for about $660 but it will save you sweet FA. At least you could make a claim against the lawyer and their professional indemnity insurance.

 

Unlikely to help

 

Actually it may help if it was market rates and he was just a 'flatmate'

 

Im not entirely certain either as he mentioned it at our last catch up. He did say he can save couples circa 50k each from unnecessary lawyers fees.

 

Just wondering if the title was only in your Sons name and you both just rented the room off would that cover you in a different way..

 

A BFA would only cost a few thousand usually.

 

Now I'm going to be very unromantic. Does he have to live with you? (sorry)

 

Wow what lawyer is charging this - would he maybe be reference $50k in lawyer costs if NO BFA was arranged.

$2k is more in line from what I've heard from clients.

 

If you're not going down the BFA path I would be making sure your partner is only contributing to joint bills.
So paying for 1/2 the water usage, electricity, gas, food, phone, internet etc
I wouldn't be having them contribute to any of the mortgage repayments.

From what I've been told the BFA aren't worth the paper they're written on (would love to hear otherwise)
The best approach is to do as per above, as they're not contributing to the asset - but still leaves yourself open
Only real way is for them not to live with you

 

BFAs are enforceable like any contract. But like all contracts they can be void if there is coercion, undue influence, unconsciousness, non-disclosure etc.

When the courts decide on how to divy up property they do look at contributions of the parties to the relationship. So not allowing him to pay for anything will be in your favour too. But the courts also look at non-financial contributions - make sure you mow the grass just in case.

 

Get consent orders.

 

S75 contributions.

 

This is why I've gone for artificial lawn - haha